S&P Maalot to hike Zim rating after debt deal

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The rating will be raised by six levels from CC to B.

Standard & Poor's Maalot Ltd. will raise the rating of Israel Corp. (TASE: ILCO) unit Zim Integrated Shipping Services Ltd. if it reaches a debt settlement with its bondholders.

The rating will be raised by six levels from CC to B and a "stable" outlook if the settlement is along the lines of the plan being discussed for the 1,2 and 3 bonds series. Zim raised $1.3 billion in 2005 and 2006 in a private placement of bonds that are not traded on the Tel Aviv Stock Exchange. Since then the company has encountered financial difficulties due to the global economic crisis, which has hit shipping hard, and resulted in a cash flow deficit of $1 billion, which is expected to continue until 2013.

Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2009